UC-NRLF 


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GIFT  OF 


•lonn  PS  2.    (August,  1916.) 


BOARD  OF  TRUSTEES 


REGULATIONS 

GOVERNING  THE  DEPOSIT 

OF  POSTAL  SAVINGS  FUNDS 

IN  BANKS 

AND  THE  ACCEPTANCE  OF  BONDS 
AS  SECURITY  THEREFOR 


ISSUED  BY  THE  BOARD  OF  TRUSTEES 
UNDER  AUTHORITY  OF  ACTS  OF  CONGRESS 


EDITION  OF  AUGUST,  1916 


//  CI 

if    UN IV 

V  1  • 


WASHINGTON 

GOVERNMENT  PRINTING  OFHCE 

1916 


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Form  PS  2.    (August,  1916.) 


BOARD  OF  TRUSTEES 


REGULATIONS 

GOVERNING  THE  DEPOSIT 

OF  POSTAL  SAVINGS  FUNDS 

IN  BANKS 

AND  THE  ACCEPTANCE  OF  BONDS 
AS  SECURITY  THEREFOR 


ISSUED  BY  THE  BOARD  OF  TRUSTEES 
UNDER  AUTHORITY  OF  ACTS  OF  CONGRESS 


EDITION  OF  AUGUST,  1916 


"       -A  Cfc»t, 


WASHINGTON 
GOVERNMENT  PRINTING  OFHCE 

1916 


Postal  Savings  System, 
Office  of  the  Board  of  Trustees, 

^\asllmg^on,  T).  C,  August  16,  1916. 
At  a  meeting  of  the  Board  of  Trustees  of  the  Postal  Savings  System 
held  August  16,  1916,  the  foUowing  resolution  was  adopted: 

''Resolved,  That  under  authority  of  the  act  of  Congress  approved 
June  25,  1910,  and  the  several  amendments  thereto,  the  Board  of 
Trustees  hereby  approves  and  promulgates  the  accompanying  revision 
of  the  regulations  governing  the  deposit  of  postal  savings  funds  in 
banks,  and  the  acceptance  of  bonds  as  security  therefor,  to  take 
effect  immediately  and  to  supersede  all  previous  editions  and  all 
regulations  and  rulings  in  conflict  therewith." 

A.  S.  Burleson,  Postmaster  General. 

W.  G.  McAdoo,  Secretary  of  the  Treasury. 

T.  W.  Gregory,  Attorney  General. 

Board  of  Trustees,  Postal  Savings  System. 
Attest : 

A.  M.  DOCKERY, 

Third  Assistant  Postmaster  General, 

Secretary  of  tlie  Board  of  Trustees. 


POSTAL   SAVINGS    SYSTEM. 


REGULATIONS  GOVERNING  THE  DEPOSIT  OF  POSTAL  SAVINGS  FUNDS  IN 
BANKS  AND  THE  ACCEPTANCE  OF  BONDS  AS  SECURITY  THEREFOR. 

ISSUED  BY  THE  BOARD  OF  TRUSTEES  UNDER  AUTHORIH  OF  ACTS  OF  CONGRESS. 


Sectiox  1.  The  administration  of  the  Postal  Savings  System  is  by 
law  divided  iijto  two  parts.  Tlic  Postmaster  General  is  charged  with 
the  designation  of  post  offices  as  postal  savings  depositories,  the  super- 
vision of  postal  savings  business  transacted  at  depository  post  offices, 
and  the  conduct  of  the  central  administrative  office  at  Washington. 
The  Board  of  Trustees,  consisting  of  the  Postmaster  General,  the 
Secretary  of  the  Treasury,  and  the  Attorney  General,  is  charged  with 
the  management  and  investment  of  postal  savings  funds  after  they 
leave  the  custody  of  postmasters.  (Act  of  June  25,  1910,  sec.  1,  as 
amended  by  the  act  of  Aug.  24,  1912.)  The  Treasurer  of  the  United 
States  is  treasurer  of  the  Board  of  Trustees.  (Act  of  May  18,  1916, 
sec.  2.) 

Sec.  2.  The  Third  Assistant  Postmaster  General  is  hereby  consti- 
tuted the  agent  of  the  Board  of  Trustees  for  all  purposes  connected 
with  the  c{ualification  of  depository  banks,  the  fixing  of  the  amounts 
of  securities  to  be  deposited  and  withdrawn  by  such  banks  and  the 
conditions  of  such  deposits  and  withdrawals,  the  deposit  of  postal 
savings  funds  to  the  credit  of  said  board  and  the  withdrawal  and 
transfer  of  such  funds,  the  authorization  of  the  sale  of  securities  of 
banks  which  fail  or  decline  to  repay  deposits  on  demand,  the  purchase 
of  postal  savings  bonds  for  depositors,  and  the  repurchase  of  such 
bonds  for  the  purpose  of  maintaining  their  parity. 

2.  In  the  event  of  the  absence  or  inability  to  serve  of  the  Third 
Assistant  Postmaster  General,  the  chief  clerk  to  the  Third  Assistant 
Postmaster  General  is  authorized  to  act  as  the  agent  of  the  Board  of 
Trustees,  for  the  purposes  stated,  in  conformity  to  section  178,  Revised 
Statutes. 

3.  All  correspondence  and  reports  intended  for  the  Board  of 
Ti'ustees  shall  be  addressed  to  the  Third  Assistant'Postmaster  General, 
Division  of  Postal  Savings,  Washington,  D.  C. 


345845 


POSTAL    SAVINGS   SYSTEM. 


ELIGIBILITY  OF   BANKS. 


Sec.  3.  The.  act  of  May  18^  1916  (amending  sec.  9  of  the  act  of 
June  25,  1910),  prescribes  that  the  funds  received  at  postal  savings 
depository  offices  in  each  city,  town,  village,  or  other  locality  shall  be 
deposited,  in  the  order  of  precedence  specified  hi  paragraph  2  of  this 
section,  in  solvent  banks  located  therein,  whether  organized  under 
National  or  State  laws,  and  whether  member  banks  or  not  of  the  Fed- 
eral Reserve  S3^stem  established  by  the  act  approved  December  23, 
1913,  being  subject  to  National  or  State  supervision  and  examination, 
willing  to  receive  such  deposits  under  the  terms  of  the  act  and  the 
regidations  made  by  authority  thereof.  The  word  ''bank"  as  used 
in  the  law  includes  savings  banks  and  trust  companies  doing  a  bank- 
mg  business. 

2.  If  one  or  more  member  banks  of  the  Federal  Reserve  System 
exist  in  any  city,  town,  village,  or  locality  where  postal  savings  de- 
posits are  made,  such  deposits  are  required  to  be  placed  in  such  mem- 
ber banks,  provided  they  qualify  to  receive  them,  substantially  in 
proportion  to  the  capital  and  surplus  of  each  such  bank;  but  if  such 
member  banks  fail  to  qualify  to  receive  the  deposits,  then  any  other 
banks  located  therein  and  eligible  as  hereinbefore  provided  may 
quahfy  to  receive  them,  and  the  deposits  shall  be  placed  in  such 
qualifying  banks  substantially  in  proportion  to  their  capital  and  sur- 
plus. If  no  bank  eligible  to  qualify  exists  in  any  city,  town,  village, 
or  locality,  or  if  none  where  such  deposits  are  made  will  receive  them 
on  the  terms  prescribed,  then  such  funds  shall  be  deposited  under 
the  teiTQS  of  said  act  in  the  bank  most  convenient  to  such  locality. 
If  no  such  bank  in  any  State  or  Territory  is  willing  to  receive  such 
deposits  on  the  terms  prescribed,  then  the  same  are  required  to  be 
deposited  with  the  Treasurer  of  the  Board  of  Trustees.  The  law 
requires  that  5  per  centum  of  the  postal  savings  funds  shall  be  ^\dth- 
dra%\ni  by  the  Board  of  Trustees  and  kept  with  the  Treasurer  in 
lawful  money  as  a  reserve. 

QUALIFICATION    OF    BANKS. 

Sec.  4.  Any  eligible  bank  desiring  to  qualify  for  deposits  of  postal 
savings  funds  shall  transmit  to  the  Third  Assistant  Postmaster  Gen- 
eral, Division  of  Postal  Savings,  Washington,  D.  C,  an  application 
accompanied  by  a  report  showing  fully  the  condition  of  the  bank  on 
a  day  not  more  than  one  month  prior  to  the  date  of  such  application. 
Such  report  shall  be  sworn  to  by  the  president  or  cashier  and  attested 
as  con-ect  by  two  members  of  the  board  of  directors,  who  shall  also 
certify  the  amount  of  paid-m  capital  and  unimpaired  surplus,  ex- 
clusive of  undivided  profits.  Blank  application  forms  may  be  ob- 
tained from  the  Third  Assistant  Postmaster  General,  Division  of 


REGULATIONS  GOVEENHSTG  DEPOSIT  OF  POSTAL  SAVINGS  FUNDS.  5 

Postal  Savings,  Washington,  D.  C.  No  deposits  will  be  made  in  any 
bank  until  it  shall  have  complied  with  the  provisions  of  this  section 
and  deposited  securities  which  meet  the  requirements  of  section  8. 

Sec.  5.  Upon  receipt  of  the  appHcation  required  by  section  4,  prop- 
erly completed,  from  a  bank  authorized  to  qualify  under  the  law,  the 
Third  Assistant  Postmaster  General  will  inform  such  bank  of  the 
initial  amount  of  bonds  or  other  securities  which  it  will  be  required  to 
deposit  as  security  for  postal  savings  funds. 

2.  A  minimum  initial  deposit  of  bonds  of  the  total  par  value  of 
$5,000  will  be  required  from  a  bank  qualifymg  at  a  first-class  post 
office;  of  the  total  par  value  of  S  1,000  at  a  second  or  third  class 
office;  and  of  the  total  par  value  of  $500  at  a  fourth-class  office;  but 
no  deposit  of  bonds  of  a  total  par  value  less  than  $500  will  be  accepted. 
If  warranted  by  the  anticipated  deposits,  greater  initial  amounts  of 
securities  than  those  above  specified  may  be  required. 

3.  Bonds  or  securities  conforming  to  the  requirements  of  section  8 
and  in  the  amount  specified  in  the  notification  of  the  Third  Assistant 
Postmaster  General  shall  be  forwarded  by  the  bank  directly  to  the 
Treasurer  of  the  United  States,  Washington,  D.  C.^ 

4.  Either  registered  or  coupon  bonds  will  be  accepted,  but  all 
registered  bonds  shall  be  registered  in  the  name' of  ''The  Treasurer  of 

the  United  States,  in  trust  for  the Bank,  of ,  as  security 

for  postal  savings  funds."  The  Treasurer  of  the  United  States  will 
dispose  of  maturing  coupons  and  checks  covering  interest  accruing  on 
registered  bonds  as  directed  by  the  banks. 

Sec.  6.  The  Third  Assistant  Postmaster  General  will  inform  the 
Treasurer  of  the  United  States  of  the  amounts  of  securities  which 
the  respective  banks  are  required  to  deposit.  Upon  receipt  of  such 
securities,  the  Treasurer  shall  determine,  as  matter  of  fact,  whether 
the  securities  conform  to  the  requirements  of  these  regulations.  He 
shall  then  submit  a  statement  of  his  findings  to  the  Solicitor  for  the 
Post  Office  Department,  who  shall  determine,  as  matter  of  law, 
whether  such  securities  are  legally  acceptable  under  the  act  of  May 
18,  1916,  and  the  regulations  herein  set  forth,  and  who  for  that 
purpose  shall  have  access  to  the  securities.  No  securities  shall  be 
accepted  until  their  legal  acceptability  has  been  determined  by  the 
Solicitor  for  the  Post  Office  Department. 

2.  If  such  bonds  are  accepted,  the  Treasurer  shall  issue  his  receipt 
therefor  in  duplicate,  forwarding  the  origmal  to  the  Third  Assistant 
Postmaster  General  with  advice  of  his  action,  and  the  dupUcate  to 
the  bank  depositing  the  secmities.     If  the  bonds  are  held  not  to 

1  To  facilitate  examination  as  to  legal  acceptabilitj'  of  securities,  banks  are  requested  to  forward,  at  the 
time  the  secui'ities  are  tendered,  for  the  use  of  the  Solicitor  for  the  Post  Oflice  Department,  certified 
copies  of  final  legal  opinions  as  to  the  validity  of  such  securities,  or,  if  such  opinions  are  not  available, 
certified  transcripts  of  the  recorded  proceedings,  including  certificates  covering  the  due  execution  and 
sale  of  such  bonds. 


6  POSTAL    SAVINGS    SYSTEM. 

conform  to  tlio  requirements  of  the  law  or  these  regulations,  they 
shall  be  retained  subject  to  the  order  and  at  the  risk  of  the  bank  for 
whoso  account  thoy  were  tendered,  and  the  bank  so  notified.  If 
the  bonds  arc  insufficient  in  amount,  the  bank  shall  be  requested 
by  the  Treasurer  to  furnish  additional  bonds. 

Sec.  7.  On  receipt  of  notice  from,  the  Treasurer  of  the  United 
States  that  the  securities  required  of  any  bank  have  been  received 
and  accepted,  the  Third  Assistant  Postmaster  General  will  notify 
such  bank  that  it  has  qualified  to  receive  deposits  of  postal  savings 
funds.  He  will  state  the  amount  fixed  as  the  maximum  balance 
which  may  be  held  by  such  bank,  and  will  instruct  the  proper  post- 
master to  make  deposits  therein. 

SECURITY    FOR    DEPOSITS. 

Sec.  8.  The  Board  of  Trustees  hereby  prescribes  and  approves 
such  security  in  public  bonds  or  other  securities,  authorized  by  act 
of  Congress  or  supported  by  the  taxing  power,  as  it  deems  sufiicient 
and  necessary  to  insure  the  safety  and  prompt  payment  on  demand 
of  postal  savings  deposits,  and  fixes  the  value  at  which  the  securities 
so  prescribed  and  approved  shall  be  accepted  for  the  purposes  named. 
Such  securities,  in  the  amount  so  specified,  shall  be  deposited  with 
the  Treasurer  of  the  Board  of  Trustees. 

2.  The  Board  of  Trustees  will  accept  as  security  for  postal  savings 
deposits,  at  the  respective  values  herein  fixed,  negotiable  interest- 
bearing  bonds  or  securities,  issued  under  express  constitutional  or 
statutory  provisions,  of  the  following  classes,  viz : 

(a)  Bonds  of  the  United  States,  of  the  Philippine  Islands,  of  the 
District  of  Columbia,  and  of  Porto  Rico,  will  be  accepted  at  their 
par  value. 

(h)  Bonds  of  any  State  of  the  United  States  and  of  the  Territory  of 
Hawaii  will  be  accepted  at  their  market  value,  but  if  such  market 
value  is  above  par,  they  wUl  be  accepted  at  their  par  value. 

(c)  Bonds  of  any  city  or  county  in  the  United  States  havmg  a 
population  of  over  30,000,  as  shown  by  the  latest  reports  of  the 
Bureau  of  the  Census,  and  bonds  of  any  school  district  in  the  United 
States  m  which  the  whole  or  the  major  portion  of  any  such  city 
is  included,  which  city,  county,  or  school  district  has  been  in  existence 
for  a  period  of  ten  years,  which  for  a  period  of  ten  years  previously 
has  not  defaulted  in  the  payment  of  any  part  of  either  principal  or 
interest  of  any  funded  debt  authorized  to  be  contracted  by  it,  and 
whose  net  funded  indebtedness  does  not  exceed  10  per  cent  of  the  valu- 
ation of  its  taxable  property,  to  be  ascertained  by  the  last  preceding 
valuation  for  the  assessment  of  taxes,  will  be  accepted  at  90  per  cent 
of  their  market  value,  but  if  such  market  value  is  above  par,  they  will 
be  accepted  at  90  per  cent  of  their  par  value. 


REGULATIONS  GOVEENING  DEPOSIT  OF  POSTAL  SAVINGS  FUNDS.  7 

{d)  Bonds  of  any  city,  town,  borough,  or  village  in  the  United  States, 
having  a  population  of  over  20,000  and  not  exceeding  30,000,  as  shown 
by  the  latest  reports  of  the  Bureau  of  the  Census,  and  bonds  of  any 
school  district  in  the  United  States  in  which  the  whole  or  the  major 
portion  of  any  such  municipality  is  included,  which  city,  town,  borough, 
village,  or  school  district  has  been  in  existence  for  a  period  of  ten  years, 
which  for  a  period  of  ten  years  previously  has  not  defaulted  in  the 
payment  of  any  part  of  either  principal  or  interest  of  any  funded 
debt  authorized  to  be  contracted  by  it,  and  whose  net  funded  indebt- 
edness does  not  exceed  10  per  cent  of  the  valuation  of  its  taxable 
property,  to  be  ascertained  by  the  last  preceding  valuation  for  the 
assessment  of  taxes,  will  be  accepted  at  80  per  cent  of  their  market 
value,  but  if  such  market  value  is  above  par,  they  will  be  accepted 
at  80  per  cent  of  their  par  value. 

{e)  Bonds  of  any  other  city,  town,  county,  or  other  legally  consti- 
tuted municipality  or  district  in  the  United  States,  which  has  been  in 
existence  for  a  period  of  ten  years,  which  for  a  period  of  ten  years 
previously  has  not  defaulted  in  the  payment  of  any  part  of  either 
principal  or  interest  of  any  funded  debt  authorized  to  be  contracted 
by  it,  and  whose  net  funded  indebtedness  does  not  exceed  10  per  cent 
of  the  valuation  of  its  taxable  property,  to  be  ascertained  by  the  last 
preceding  valuation  for  the  assessment  of  taxes,  wiJl  be  accepted  at 
75  per  cent  of  their  market  value,  but  if  such  market  value  is  above 
par,  they  will  be  accepted  at  75  per  cent  of  their  par  value. 

3.  The  term  "  net  funded  indebtedness,"  for  the  pul-poses  of  para- 
graph 2,  (c),  (d),  and  (e),  is  hereby  defined  to  be  the  difference  between 
the  legal  gross  indebtedness  of  a  city,  town,  county,  or  other  legally 
constituted  mmiicipahty  or  district  (includmg  the  amount  of  the 
bonds  of  any  civil  division  whose  territorial  limits  are  approximately 
coterminous  therewith)  and  the  aggregate  of  the  following  items,  when 
included  in  such  legal  gross  indebtedness: 

(a)  The  total  of  all  sinking  funds  accumulated  for  the  redemption 
of  such  gross  indebtedness,  except  sinking  funds  applicable  to  bonds 
hereafter  described  in  this  section. 

(b)  The  amount  of  outstanding  bonds  or  other  debt  obligations, 
made  payable  from  current  revenues. 

(c)  The  amount  of  outstanding  bonds  issued  for  the  purpose  of 
providing  the  inhabitants  of  a  municipahty  with  pubhc  utilities: 
Provided,  That  evidence  is  submitted  showing  that  the  income  from 
such  utilities  has  proved  to  be  sufficient  for  maintenance,  for  pay- 
ment of  interest  on  such  bonds,  and  for  the  accumulation  of  a 
sinking  fund  for  their  redemption. 

(d)  The  amount  of  outstanding  improvement  bonds,  issued  under 
laws  which  provide  for  the  levying  of  special  assessments  against 
abutting  property:  Provided,  That  evidence  is  submitted  showing 

54215°— 16 2 


8  rOSTAL    SAVINGS    SYSTEM. 

tliat  assessments  are  levied  in  sufficient  amounts  to  insure  the  pay- 
ment of  interest  on  the  bonds  and  the  redemption  thereof. 
-  4.  The  Board  of  Trustees  reserves  the  right  to  reclassify  the  secu- 
rities acceptable  for  deposits  and  to  change  the  valuation  at  which 
they  will  be  accepted.  Under  no  circumstances  will  securities  of 
other  classes  than  those  above  named  be  accepted. 

Sec.  9.  Bonds  of  the  several  classes  described  in  section  8,  para- 
graph 2,  (b),  (c),  (d),  and  (e),  to  be  acceptable  as  security,  shall  be  the 
general  obligations  of  the  States,  Territories,  counties,  cities,  towns, 
or  other  poHtical  divisions  by  or  in  behalf  of  which  they  are  issued, 
and  payable,  either  directly  or  ultimately,  without  limitation  to  a 
special  fund,  from  the  proceeds  of  taxes  authorized  to  be  levied  upon 
aJl  the  taxable  real  and  personal  property  within  the  territorial  limits 
of  such  pohtical  divisions:  Provided,  That  in  any  case  where  the  rate 
of  tax  maybe  subject  to  a  constitutional  or  statutory  limit,  the  Solicitor 
for  the  Post  Office  Department  may  require  satisfactory  evidence  that, 
notwithstanding  such  limit,  the  interest  and  prmcipal  of  the  bonds  can 
be  paid  after  making  due  provision  for  current  expenses,  interest 
and  principal  of  outstanding  debts,  and  other  necessary  charges. 

Sec.  10.  Obligations  of  the  general  class  embracing  what  are 
commonly  known  as  "revenue  bonds,"  "temporary  bonds,"  "tempo- 
rary notes,"  "certificates  of  mdebtedness,"  "warrants,"  and  the  like 
obligations,  whether  issued  in  anticipation  of  the  collection  of  taxes, 
assessments,  or  other  revenues,  or  of  the  sale  of  bonds  or  other  obli- 
gations, or  for  similar  purposes,  will  not  be  accepted  as  security  for 
postal  savings  deposits:  Provided,  That,  in  applying  this  regulation, 
consideration  will  be  given  to  the  legal  status  of  the  obhgations  sub- 
mitted rather  than  to  the  nomenclature  employed  in  designating 
such  obligations. 

Sec.  11.  Bonds  which  in  all  other  respects  are  found  to  be  legally 
acceptable  as  security  under  the  postal  savings  act  and  these  regu- 
lations will  be  construed,  as  a  matter  of  law,  to  conform  to  those 
provisions  of  section  8,  paragraph  2,  (c),  (d),  and  (e),  respectively, 
which  relate  to  term  of  existence  and  nondefault,  under  the  following 
conditions: 

(a)  Bonds  issued  by  or  in  behalf  of  any  city,  town,  comity,  or 
other  legally  constituted  mmiicipahty  or  district  in  the  United 
States  which  was,  subsequently  to  the  issuance  of  such  bonds,  con- 
solidated with,  or  merged  into,  an  existing  pohtical  division  which 
meets  the  requirements  of  these  regulations,  will  be  deemed  to  be  the 
bonds  of  such  pohtical  division:  Provided,  That  such  bonds  were 
assumed  by  such  pohtical  division  imder  statutes  and  appropriate 
proceedings  the  effect  of  which  is  to  make  such  bonds  general  obh- 
gations of  such  assuming  pohtical  division,  and  payable,  either 
directly  or  ultimately,  without  limitation  to  a  special  fund,  from  the 


EEGULATIONS  GOVEEI^ING  DEPOSIT  OF  POSTAL  SAYINGS  FUNDS.  9 

proceeds  of  taxes  levied  upon   all  the  taxable  real  and   personal 
property  within  its  territorial  limits. 

(h)  Bonds  issued  by  or  in  behalf  of  any  city,  town,  county,  or 
other  legally  constituted  municipahty  or  district  in  the  United  States 
which  was,  subseqiiently  to  the  issuance  of  such  bonds,  wholly 
succeeded  by  a  newly  organized  poHtical  division,  whose  term  of 
existence,  added  to  that  of  such  original  poUtical  division,  or  of  any 
other  pohtical  division  so  succeeded,  is  equal  to  a  period  of  10  years, 
will  be  deemed  to  be  bonds  of  such  succeeding  political  division: 
Provided,  That  durmg  such  period  none  of  such  political  divisions 
shall  have  defaulted  hi  the  payment  of  any  part  of  either  principal 
or  interest  of  any  funded  debt  authorized  to  be  contracted  by  it: 
And  provided  further,  That  such  bonds  were  assumed  by  such  new 
political  division  under  statutes  and  appropriate  proceedings  the 
effect  of  which  is  to  make  such  bonds  general  o])hgations  of  such 
assuming  pohtical  division,  and  payable,  either  directl}-  or  ulti- 
mately, without  limitation  to  a  special  fund,  from  the  proceeds  of 
taxes  levied  upon  all  the  taxable  real  and  personal  property  within 
its  territorial  limits. 

(c)  Bonds  issued  by  or  in  behalf  of  any  city,  towTi,  county,  or 
other  legally  constituted  municipahty  or  district  in  the  United 
States  which,  prior  to  such  issuance,  became  the  successor  of  one 
or  more,  or  was  formed  by  the  consoUdation  or  merger  of  two  or 
more,  preexistmg  pohtical  divisions,  the  term  of  existence  of  one  or 
more  of  which,  added  to  that  of  such  succeeding  or  consohdated 
poHtical  division,  is  equal  to  a  period  of  10  years,  wiU  be  deemed  to 
be  bonds  of  a  pohtical  division  which  has  been  in  existence  for  a 
period  of  10  years:  Provided,  Tliat  durmg  such  period  none  of  such 
original,  succeeding,  or  consolidated  political  divisions  shall  have 
defaulted  in  the  payment  of  any  part  of  either  principal  or  interest, 
of  any  funded  debt  authorized  to  be  contracted  by  it. 

Sec.  12.  The  Treasurer  of  the  Board  of  Trustees  shall  make  exami- 
nations semiannually,  or  oftener  if  he  deems  it  necessary,  of  the 
securities  which  have  been  accepted  from  qualified  banks,  and  when- 
ever, in  his  judgment,  any  of  such  securities  have  so  far  depreciated  in 
value  as  to  make  desirable  the  deposit  of  additional  or  new  securities, 
he  shall  inform  the  Third  Assistant  Postmaster  General  of  the  name 
of  the  bank,  the  kind  and  amount  of  the  securities,  and  the  amount  of 
the  depreciation.  The  Third  Assistant  Postmaster  General  will 
notify  the  Treasurer  and  the  bank  of  the  amount  of  additional  or  new 
securities  which  the  bank  shall  deposit,  and  upon  their  receipt  by  the 
Treasurer,  the  procedure  provided  in  section  6  as  to  their  acceptance 
or  rejection,  and  in  section  22,  as  to  the  return  of  the  origmal  securi- 
ties, if  new  securities  are  required,  shall  be  followed. 


10  POSTAL    SAVINGS    SYSTEM. 


APPORTIONMENT    OF   DEPOSITS. 


Sec  13.  When  more  than  one  bank  in  any  city,  town,  village,  or 
locality  has  qualified  to  receive  postal  savings  funds,  deposits  of  such 
funds  shall  be  apportioned  substantially  upon  the  basis  of  capital  and 
surplus  as  required  by  the  act  of  May  18,  1916,  and  shall  be  made  to 
the  credit  of  the  Board  of  Trustees  in  such  rotation  and  amounts  as 
wUl  effect  such  apportionment,  until  the  deposits  reach  the  maximum 
balance  authorized  for  any  bank.  The  banks  concerned  will  be  fully 
informed  in  the  premises. 

2.  An  apportionment  of  postal  savings  fimds  will  apply  in  the  case 
of  each  qualified  bank  only  to  funds  deposited  after  the  date  as  of 
which  the  bank  qualified.. 

Sec.  14.  After  any  apportiomnent  of  funds  has  been  made  in  a 
given  locality,  no  other  bank  will  be  allowed  to  quahfy  to  receive 
postal  savings  deposits  except  as  of  the  1st  day  of  January,  April 
July,  or  October,  unless  the  maximum  amount  of  deposits  applied 
for  by  the  banks  already  ciualified  has  been  reached  and  such  banlvS 
have  not  qualified  for  additional  funds.  When  a  qualified  member 
bank  of  the  Federal  Reserve  System  in  which  the  deposits  have 
reached  the  maximum  authorized  balance  declines  or  fails  to  furnish 
additional  collateral  and  a  local  nonmember  bank  qualifies  to  receive 
deposits,  the  member  bank  must  await  the  next  quarterly  reappor- 
tionment date  before  qualifying  for  additional  funds.  Apphcations 
to  quahfy  under  a  reapportionment  of  the  funds  of  any  depository 
ofiice  shall  be  forwarded  in  sufficient  time  to  reach  the  Third  Assistant 
Postmaster  General,  Division  of  Postal  Savings,  before  the  15th  day 
of  December,  March,  June,  or  September. 

2.  When  the  capital  or  surplus  of  a  depository  bank  is  increased  or 
reduced  after  it  has  qualified  as  a  depository,  the  president  or  casliier 
shall  promptly  certify  to  the  Third  Assistant  Postmaster  General, 
Division  of  Postal  Savings,  the  amount  of  such  bank's  paid-in  cap- 
ital and  unimpaired  surplus,  exclusive  of  undivided  profits,  after  such 
increase  or  reduction,  in  order  that  proper  reapportionment  of  the 
deposits  may  be  made  among  the  banks  affected  as  of  the  dates  fii*st 
above  named. 

INTEREST. 

Sec.  15.  Until  further  notice,  banks  which  have  qualified  to  receive 
deposits  of  postal  savings  funds  will  be  required  to  credit  the  Board 
of  Trustees  with  interest  at  the  rate  of  two  and  one-half  per  cent  per. 
annum,  as  of  January  1  and  July  1  in  each  year,  upon  the  average 
daily  balances  of  postal  savings  funds  deposited  with  such  banks, 
as  shown  by  the  audited  accounts  of  postmasters  and  other 
agents  of  the  Postal  Savings  System.  Such  mterest  shall  be  com- 
puted and  entered  as  required  bv  instructions  on  the  back  of  Form 
PS  510. 


REGULATIONS  GOVERNING  DEPOSIT  OF  POSTAL  SAVINGS  FUNDS.       11 

2.  The  Board  of  Trustees  will,  from  time  to  time,  make  such  changes 
in  the  rate  of  interest  to  be  paid  by  qualified  banks  as  it  may  deem 
proper,  subject  to  the  minimum  rate  prescribed  by  the  act  of  May  18, 
1916,  the  rate  adopted  being  uniform  throughout  the  United  States 
and  Territories  thereof. 

DEPOSITS   OP   FUNDS   IN   BANKS. 

Sec.  16.  Postmasters  who  deposit  in  qualified  banks  will  be  in- 
structed to  make  all  such  deposits  to  the  credit  of  the  Board  of 
Trustees,  Postal  Savings  System,  and  will  be  required  to  make  daily 
deposits  of  all  excess  postal  savings  receipts  amounting  to  $10  or 
more,  except  on  the  25th  day  of  each  month,  when  all  cash  on  hand 
amounting  to  $1  or  more  shall  be  deposited. 

2.  On  receipt  of  a  deposit  of  such  funds  the  bank  shall  issue  a  certifi- 
cate of  deposit,  in  dupUcate,  on  Form  PS  400,  in  the  name  of  the  post- 
master or  other  officer  or  agent  making  the  deposit.  The  duplicate 
shall  be  immediately  delivered  or  forwarded  to  the  postmaster  or 
other  officer  or  agent  making  the  deposit  and  the  original  certificates 
shall  be  forwarded  by  the  bank  at  the  close  of  each  calendar  week  to 
the  Third  Assistant  Postmaster  General,  Division  of  Postal  Savings. 
All  original  certificates  on  hand  at  the  end  of  a  month,  even  though 
covermg  only  a  part  of  a  week,  shall  be  forwarded.  Qualified  banks 
will  be  suppHed  with  blank  certificates,  Form  PS  400. 

EXCESS   DEPOSITS. 

Sec.  17.  If  any  postmaster  shaU  deposit  in  a  qualified  bank  an 
amount  in  excess  of  the  maximum  balance  authorized,  such  bank 
shall  immediately  notify  the  Third  Assistant  Postmaster  General, 
Division  of  Postal  Savings,  and,  imtil  otherwise  directed,  shall  transfer 
such  excess  at  the  close  of  business  each  day  to  the  Treasurer  of  the 
United  States  at  Washington  or  to  the  Assistant  Treasurer  of  the 
United  States  in  one  of  the  following  cities :  New  York,  Philadelphia, 
Boston,  Baltimore,  Cincinnati,  Chicago,  St.  Louis,  New  Orleans,  or 
San  Francisco.  Such  transfer  shall  be  made  to  the  credit  of  the 
*'  Board  of  Trustees,  Postal  Savings  System,  on  accoimt  of  returnable 
deposits." 

Sec.  18.  Should  additional  funds  beyond  the  amount  for  which  a 
bank  has  qualified  become  available  for  deposit,  the  bank,  in  order  to 
receive  further  deposits,  wiU  be  required  to  furnish  additional  securi- 
ties in  the  manner  provided  by  section  5,  paragraphs  3  and  4,  and 
the  procedure  set  forth  in  sections  6  and  7  shall  be  followed.  When 
the  volume  of  deposits  in  a  quaUfied  bank  approaches  the  maximum 
balance  which  it  is  authorized  to  receive,  and  it  appears  that  funds 
wiU  be  available  in  the  near  future  for  deposit  in  excess  of  such  bal- 
ance, the  bank  may,  if  it  so  desires,  forward  additional  bonds  directly 


12  '  POSTAL   SAVINGS   SYSTEM. 

to  the  Treasurer  of  the  United  States  mthout  awaiting  instructions 
from  the  Tliird  Assistant  Postmaster  General,  who  should,  however, 
be  promptly  notified  of  such  action. 

WITHDRAWALS   Bf   POSTMASTERS. 

Sec.  19.  All  postal  savings  funds  are  required  to  be  deposited  to 
the  credit  of  the  Board  of  Trustees.  In  order  to  provide  a  post- 
master who  deposits  in  bank  with  funds  for  meeting  withdrawals  by 
depositors,  one  bank,  especially  designated  for  the  purpose,  will  be  au- 
thorized to  honor  his  official  checks,  drawn  against  the  Board  of  Trus- 
tees' accoimt,  and  not  exceeding  a  specified  amount  in  any  one  cal- 
endar month.  The  amount  of  the  credit  thus  fixed  may  be  added  to 
the  proportion  of  deposits  assigned  to  the  designated  bank,  but  shall 
be  secured  by  bonds,  subject  to  the  payment  of  interest,  and  included 
in  the  maximum  balance  which  such  bank  is  authorized  to  receive. 
Such  credit  may  be  increased  from  time  to  time  by  the  Third 
Assistant  Postmaster  General. 

WITHDRAWALS  BY  BOARD  OF  TRUSTEES. 

Sec.  20.  Whenever  postal  savings  funds  are  to  be  withdrawn  from 
a  quahfied  bank  by  the  Board  of  Trustees  for  investment  in  bonds  or 
other  securities  of  the  United  States,  or  for  other  purposes,  the  Third 
Assistant  Postmaster  General  will  draw  a  draft  on  the  bank,  or  will 
direct  the  bank  to  deposit  the  required  amount  to  the  credit  of  the 
"Board  of  Trustees,  Postal  Savings  System,"  with  the  Treasurer  or 
an  assistant  treasurer  of  the  United  States,  or  other  authorized  agent. 

2.  On  receipt  of  such  deposit  the  Treasurer,  assistant  treasurer,  or 
other  agent  shall  issue  a  certificate  of  deposit  in  dupHcate  in  the  name 
of  the  depositing  bank,  and  forward  the  original  certificate  to  the 
Third  Assistant  Postmaster  General,  Division  of  Postal  Savings,  and 
the  dupHcate  to  the  bank. 

3.  When  funds  are  to  be  transferred  from  one  bank  to  another  by 
direction  of  the  Third  Assistant  Postmaster  General,  the  procedure 
prescribed  in  section  16,  paragraph  2,  shall  be  followed. 

WITHDRAWALS   OF    SECURITIES    BY   BANKS. 

Sec.  21.  Whenever  a  bank  desires  to  relinquish  the  whole  or  a 
part  of  its  postal  savings  deposits  or  to  withdraw  such  of  its  securities 
as  do  not  cover  deposits,  it  shall  notify  the  Third  Assistant  Postmaster 
General,  Division  of  Postal  Savings,  and  shall  forward  to  him  the 
duplicate  receipt  or  receipts  issued  by  the  Treasurer  of  the  United 
States  at  the  time  the  securities  were  deposited,  together  with  a  duly 
attested  and  certified  copy  of  a  resolution  of  its  board  of  directors 
authorizing  such  withdrawal  and  specifying  the  disposition  to  be 
made  of  the  securities. 


REGULATIONS  GOVEENING  DEPOSIT  OF  POSTAL  SAVINGS  FUNDS.        13 

.  2.  The  Third  Assistant  Postmaster  General  will  direct  the  bank  as 
to  the  disposition  to  be  made  of  the  relinquished  deposits,  and  after 
such  disposition  will  transmit  both  the  original  and  duplicate  receipts 
to  the  Treasurer  of  the  United  States,  who  shall  then  dispose  of  the 
bonds  as  directed  by  the  bank. 

3.  If  the  entire  amount  of  securities  deposited  is  not  withdrawn, 
the  Treasurer  shall  return  the  receipts  to  the  Third  Assistant  Post- 
master General,  indorsing  thereon  the  amoimt  of  securities  with- 
drawn, and  the  Third  Assistant  Postmaster  General  will  transmit 
the  duplicate  receipt  to  the  bank.  If  the  entire  amount  of  securities 
deposited  is  withdrawn,  the  receipts  shall  be  canceled  and  retamed 
by  the  Treasurer. 

4.  Registered  bonds  withdrawn  for  any  reason  shall  be  assigned  by 
the  Treasurer  directly  to  the  bank  for  whose  account  they  were  pre- 
viously held,  except  in  the  cases  covered  by  sections  23  and  25,  and 
except  where  United  States  bonds  are  called  for  redemption,  in  which 
case  they  shall  be  assigned  directly  to  the  Secretary  of  the  Treasury. 

5.  If  the  duplicate  receipt  issued  to  a  bank  covering  securities 
deposited  shall  be  lost,  stolen,  or  destroyed,  and  can  not  be  produced 
when  a  withdrawal  of  bonds  is  to  be  made,  an  affidavit  setting  forth 
the  facts  shall  be  executed  by  an  officer  of  the  bank  and  forwarded 
to  the  Third  Assistant  Postmaster  General,  who  may  authorize  the 
Treasurer  of  the  United  States  to  accept  such  affidavit  in  lieu  of  the 
missing  receipt. 

Sec.  22.  When  a  bank  desires  to  substitute  securities  in  lieu  of 
those  abeady  deposited,  it  shall  notify  the  Third  Assistant  Post- 
master General,  Division  of  Postal  Savings,  inclosing  the  Treasurer's 
duplicate  receipt  for  the  bonds  to  be  withdrawn,  and  a  duly  certified 
and  attested  copy  of  a  resolution  of  its  board  of  directors  authoriz- 
ing such  substitution.  The  Third  Assistant  Postmaster  General  will 
then  forward  to  the  Treasurer  both  the  original  and  duplicate  receipts 
for  the  bonds  to  be  withdrawn  and  direct  the  bank  to  forward  to  the 
Treasurer  the  securities  to  be  substituted.  If  they  are  accepted,  the 
Treasurer  shall  issue  new  receipts  to  the  Third  Assistant  Postmaster 
General  and  to  the  bank  and  dispose  of  the  securities  withdrawn  as 
requested  by  the  bank. 

Sec.  23.  When  banks  desire  to  exchange  with  one  another 
securities  deposited  by  them,  they  shall  forward  to  the  Third  Assist- 
ant Postmaster  General  hsts  of  such  securities,  accompanied  by  duly 
attested  and  certified  copies  of  resolutions  of  their  boards  of  directors 
authorizing  such  exchanges  and  the  Treasurer's  duphcate  receipts 
covering  such  securities.  If  the  exchanges  are  approved,  the  Third 
Assistant  Postmaster  General  will  so  inform  the  Treasurer,  who  shall 
simultaneously  withdraw  from  deposit  and  assign  the  securities  and 
redeposit  them  for  account  of  the  respective  banks,  issumg  new 
receipts  in  duphcate  therefor. 


14  POSTAL    SAVINGS    SYSTEM. 

FAILUKE   OF   BANKS   TO   REPAY   DEPOSITS  OR  OTHERWISE  TO  OBSERVE 

REGULATIONS. 

Sec.  24.  Any  qualified  bank  which  shall  fail  to  comply  with  these 
regulations  shall  be  liable  to  be  disquahfied.  In  the  event  of  such 
disqualification  the  Third  Assistant  Postmaster  General  wiU  direct 
the  bank  as  to  the  disposition  to  be  made  of  its  postal  savings  de- 
posits, and  the  bank  shall  thereupon  comply  with  the  provisions  of 
section  21  in  so  far  as  they  shall  be  apphcable. 

Sec.  25.  If  a  quahfied  bank  shall  fail  or  decUne  to  repay  postal 
savings  deposits  and  accrued  interest  thereon,  when  so  required  by 
the  Third  Assistant  Postmaster  General,  he  will  authorize  and  direct 
the  Treasurer  of  the  United  States  to  invite  bids  for  the  purchase  of 
securities  deposited  by  such  bank  and  to  seU  such  portion  thereof  as 
may  be  necessary  to  reimburse  the  Board  of  Trustees  in  the  amount 
which  the  bank  has  failed  or  dechned  to  pay,  and  to  assign  and 
dehver  such  securities  to  the  purchaser  upon  payment  therefor. 
The  proceeds  from  such  sale  shall  be  deposited  by  the  Treasurer  to 
the  credit  of  the  Board  of  Trustees  as  directed  by  the  Third  Assistant 
Postmaster  General.  Any  portion  of  such  securities  or  the  proceeds 
thereof  remaining  after  the  Board  of  Trustees  has  been  fully  reim- 
bursed shaU  be  returned  to  the  bank  or  to  its  receiver  or  other  legal 
representative. 

2.  If  it  shah  appear  to  the  Treasurer  that  the  immediate  sale  of 
such  securities  as  above  provided  would  not  realize  a  sufiicient  amount 
to  reimburse  fuUy  the  Board  of  Trustees,  he  shall  so  inform  the 
Tliird  Assistant  Postmaster  General,  who  may  direct  that  such  sale 
be  deferred. 

REPORTS. 

Sec.  26.  At  the  close  of  each  month,  or  oftener  if  required,  each 
quahfied  bank  shall  render  to  the  Third  Assistant  Postmaster  Gen- 
eral, Division  of  Postal  Savings,  a  statement  on  Form  PS  510  of  the 
postal  savings  fund  account  as  showm  by  its  books,  giving  all  infor- 
mation called  for  by  said  form,  a  supply  of  which  wiU  be  furnished 
to  each  bank.  This  report  is  necessary  for  the  audit  of  the  accounts 
of  postmasters  and  banks,  and  shall  be  rendered  in  every  case  when 
funds  arc  on  deposit,  even  though  no  transactions  occurred  during 
the  month.  Each  bank  shaU  forward  aU  paid  checks  or  drafts  with 
the  monthly  statement  of  account  in  which  credit  is  claimed  for  their 
payment. 

2.  Each  bank  shall  furnish  at  any  time  to  a  duly  authorized  repre- 
sentative of  the  Board  of  Trustees  any  information  requested  as  fo 
its  postal  savings  transactions. 


KEGULATIONS  GOVERNING  DEPOSIT  OF  POSTAL  SAVINGS  FUNDS.  15 

MISCELLANEOUS. 

Sec.  27.  No  bank  in  which  postal  Savings  funds  are  deposited 
shall  charge  or  receive  any  exchange  or  other  fees  or  compensation 
on  account  of  the  cashing  or  collection  of  any  checks  or  drafts  or  the 
performance  of  any  other  service  in  connection  with  the  Postal  Sav- 
ings System.     (See  sec.  8,  act  of  June  25,  1910.) 

Sec.  28.  A  qualified  bank  may  advertise  that  it  is  a  "United 
States  depository  for  postal  savings  funds,"  but  no  other  form  of 
advertisement  is  authorized  by  the  Board  of  Trustees. 


APPENDIX. 


AN  ACT  TO  ESTABLISH  POSTAL  SAVINGS  DEPOSITORIES 
FOR  DEPOSITING  SAVINGS  AT  INTEREST  WITH  THE 
SECURITY  OF  THE  GOVERNMENT  FOR  REPAYilENT 
THEREOF,  AND  FOR  OTHER  PURPOSES.i 

Be  it  enacted  hj  the  Senate  and  House  of  Rejyresentatives 
of  the    United  States  of  America  in  Congress  assembled^ 
That  there  be,  and  is  hereby,  created  a  board  of  trustees   Board  of  trus. 
for  the  control,  superrision,  and  administration  of  the 
postal  savings  depository  offices  designated  and  estab- 
Hshed  under  the  provisions  of  this  act,  and  of  the  funds 
received  as  deposits  at  such  postal  savings  depository 
offices  by  virtue  thereof.     Said  board  shall  consist  of  the    Personnel. 
Postmaster  Greneral,  the  Secretary  of  the  Treasury,  and 
the  Attorney  General,  severally,  acting  ex  officio,  and 
shall  have  power  to  make  all  necessary  and  proper  regu-    Powers. 
lations  for  the  receipt,  transmittal,  custody,  deposit,  in- 
vestment, and  repayment  of  the  funds  deposited  at  postal 
savings  depository  offices. 

Tlie  board  of  trustees  shall  submit  a  report  to  Congress  Report  to  con. 
at  the  beginning  of  each  regular  session  showing  by  States 
and  Territories  (for  the  preceding  fiscal  year)  the  number 
and  names  of  post  offices  receiving  deposits,  the  aggre- 
gate amount  of  deposits  made  therein,  the  aggregate 
amount  of  withdrawals  therefrom,  the  number  of  deposi- 
tors in  each,  the  total  amount  standing  to  the  credit  of 
all  depositors  at  the  conclusion  of  the  year,  the  amount  of 
such  deposits  at  interest,  the  amount  of  interest  received 
thereon,  the  amount  of  interest  paid  thereon,  the  amount 
of  deposits  surrendered  by  depositors  for  bonds  issued  by 
authority  of  this  act,  and  the  number  and  amount  of 
unclaimed  deposits.  Also  the  amount  invested  in  Govern- 
ment securities  by  the  trustees,  the  amount  of  extra  ex- 
pense of  the  Post  Office  Department  and  the  postal  service 
incident  to  the  operation  of  the  postal  savings  depository 

1  Amended  by  acts  of  Aug.  24,  1912  (see  p.  25),  Sept.  23, 191-1  (see  p.  25),  and  May  18, 
1916  (see  p.  26). 

17 


gress. 


18  POSTAL   SAVINGS   SYSTEM. 

wds*  fn'  itlilra  system,  [the  amount  of  work  done  for  the  savings  deposi- 
IS'^of'septomi.e?  ^^^y  j??/s^6m  by  the  Post  OJice  Department  and  postal 
23,1914.  seo  page  gg;.y^gg  ^^  fj^g  transportation  of  free  mail,]  and  all  other 

facts    which    it   may    deem    pertinent    and    proper    to 

present. 
Bracketed      [Sec.  2.   That  the  Postmastcr  General  is  hereby  directed 

section  in  italics        L  ^  ^  ^ 

ac^^of^se  tembe?  ^^  prepare  and  issue  special  stamps  of  the  necessary  de- 
^,  1914.  See  page  nominations  for  use,  in  lieu  of  penalty  or  franked  envel- 
opes, in  the  transmittal  of  free  mail  resulting  from  the 
administration  of  this  act.] 

Postal  sa  inrs     Sec.  3.  That  Said  board  of  trustees  is  hereby  author- 
depository  omees..  J.J-i.  1  1.     £C 

ized  and  empowered  to  designate  such  post  omces  as  it 

may  select  to  be  postal  savings  depository  offices,  and 
each  and  every  post  office  so  designated  by  order  of  said 
board  is  hereby  declared  to  be  a  postal  savings  depository 
office  within  the  meaning  of  this  act  and  to  be  author- 
ized and  required  to  receive  deposits  of  funds  from  the 
pubHc  and  to  account  for  and  dispose  of  the  same,  accord- 
ing to  the  provisions  of  this  act  and  the  regulations  made 
Hours  cf  busi-  in  pursuaucc  thereof.  Each  postal  savings  depository 
office  shall  be  kept  open  for  the  transaction  of  busmess 
durmg  such  hours  as  the  Postmaster  General,  with  the 
approval  of  the  board  of  trustees,  shall  direct. 

cou^tT^^  of  ^'^-  Sec.  4.  That  accounts  may  be  opened  and  deposits 
made  in  any  postal  savings  depository  established  under 

^^Age  of  deposi-  ^]^jg  ^ct  by  any  person  of  the  age  of  ten  years  or  over,  in 

Married  women.  ]^g  qj.  jjgj.  q^tj^  name,  and  by  a  married  woman  in  her 

own  name  and  free  from  any  control  or  interference  by 

acanmr"""' °°^  ^^^  husbaud;  but  no  person  shall  at  the  same  time  have 
more  than  one  postal  savings  account  in  his  or  her  own 
right. 

Sec.  5.  That  the  postmaster  at  a  postal  savings  de- 
pository office  shall,  upon  the  making  of  an  application 
to  open  an  account  under  tliis  act  and  the  submission  of 
Passbooks,  an  initial  deposit,  deliver  to  the  depositor  a  pass  book 
free  of  cost,  upon  which  shall  be  written  the  name  and 
signature  or  mark  of  the  depositor  and  such  other  memo- 
randa as  may  be  necessary  for  purposes  of  identification, 
in  which  pass  book  entries  of  all  deposits  and  withdrawals 
shall  be  made  in  both  figures  and  writing:  Provided,  That 
the  Postmaster  General  may,  with  the  approval  of  the 
Device  in  lieu-^Qard  of  trustecs,  adopt  some  other  device  or  devices  in 

01  pass  books.  '  -i 

lieu  of  a  pass  book  as  a  means  of  maldng  and  preserving 
evidence  of  deposits  and  withdrawals. 


REGULATIONS  GOVEKNING  DEPOSIT  OF  POSTAL  SAVINGS  FUNDS.       19 

Sec.  6.  That  at  least  one  dollar,  or  a  larger  amount  in    ^t^^e^j.   ^^^ 
multiples  thereof,  must  be  deposited  before  an  account  is^^jlJ^fiiinicsotone 
opened  with  the  person  depositing  the  same,  and  one  dol- *^°'''^'"- 
lar,  or  multiples  thereof,  may  be  deposited  after  such  ac- 
count has  been  opened,  [hut  no  one  sh<iU  he  permitted  to   Bracketed 

,.  -,       "  '^,^.  -^  ,         words   in   italics 

deposit  more  than  one  hundred  dollars  in  any  one  calen- amended  by  the 

2iCt/     of     M'lV     IS 

dar  month]:  Provided,  That  in  order  that  smaller  amounts  wie.  seepage26! 
may  be  accumulated  for  deposit  any  person  may  purchase 
for  ten  cents  from  any  depository  office  a  postal  savings    I'ostai  savings 
card  to  which  may  be  attached  specially  prepared  adhe-    rostai  savings 

*'  1.  y    r      r  stamps. 

sive  stamps,  to  be  known  as  "postal  savings  stamps,"  and 
when  the  stamps  so  attached  amount  to  one  dollar,  or  a 
larger  sum  in  multiples  thereof,  including  the  ten-cent 
postal  savings  card,  the  same  may  be  presented  as  a  de- 
posit for  opening  an  account,  and  additions  may  be  made 
to  any  account  by  means  of  such  card  and  stamps  in 
amounts  of  one  dollar,  or  multiples  thereof,  and  when  a 
card  and  stamps  thereto  attached  are  accepted  as  a  de- 
posit the  postmaster  shall  immediately  cancel  the  same. 
It  is  hereby  made  the  duty  of  the  Postmaster  General  to 
prepare  such  postal  savings  cards  and  postal  savings 
stamps  of  denominations  of  ten  cents,  and  to  keep  them    saio  of  postal 

■,.  .1  .  ,  .,  rr-i,     savings  cards  and 

on  sale  at  every  postal  savmgs  depository  oihce,  and  to  stamps. 
prescribe  all  necessary  rules  and  regulations  for  the  issue, 
sale,  and  cancellation  thereof. 

Sec.  7.  That  interest  at  the  rate  of  two  per  centum  poSsT^*  °°  ^^ 
per  annum  shall  be  allowed  and  entered  to  the  credit  of  year!  ^^^  °°^^  * 
each  depositor  once  in  each  year,  the  same  to  be  com-    subject  to  regu- 
puted  on  such  basis  and  under  such  rules  and  regula- 
tions as  the  board  of  trustees  may  prescribe;  but  interest 
shall  not  be  computed  or  allowed  on  fractions  of  a  dollar: 
[Provided,  That  the  halance  to  the  credit  of  any  one  person  words  in  italics 
shall  never  he  allowed  to  exceed  five  hundred  dollars,  exclu^^^^ot  May  is, 

r  7.7-.  .1  1916.   See  page  26. 

sive  of  accumulated  interest.] 

Sec.  8.  That  any  depositor  may  withdraw  the  whole  de™.'^'^^^  °' 
or  any  part  of  the  funds  deposited  to  his  or  her  credit,  deposttS.  ^°''''' 
with  the  accrued  interest,  upon  demand  and  under  such 
regulations    as    the    board    of    trustees   may   prescribe. 
Withdrawals  shall  be  paid  from  the  deposits  in  the  State 
or  Territory,  so  far  as  the  postal  funds  on  deposit  in  such 
State  or  Territory  may  be  sufficient  for  the  purpose,  and, 
so  far  as  practicable,  from  the  deposits  in  the  community 
in  which  the  deposit  was  made.    No  bank  in  which  postal  ceive^ch^ge  ^ 
savings  funds  shall  be  deposited  shall  receive  any  q-x__°^'^^^ ^^^^- 


20  POSTAL   SAVINGS   SYSTEM. 

change  or  other  fees  or  compensation  on  account  of  the 
cashing  or  collection  of  any  checks  or  the  performance 
of  any  other  service  in  connection  with  the  postal  sav- 
ings depository  system. 
ti(m  m^Halics^J^-     [SjEc.  9.  That  postal  savings  funds  received  under  the 
tkin 2^of\hoacTo"t pfovisions  of  tMs  uct  shall  he  deposited  in  solvent  lanTcs, 
SM^page^27.  ^^^^'  ^'^^t^^-^f  organized  under  National  or  State  laws,  heing  suh- 
ject  to  National  or  State  supervision  and  examination,  and 
the  sums  deposited  shall  hear  interest  at  the  rate  of  not 
less   than   two   and   one-fourth  per   centum   per   annum, 
which  rates  shall  he  uniform  throughout  the   United  States 
and  Territories  thereof;  hut  five  per  centum  of  such  funds 
shall  he  withdrawn  hy  the  hoard  of  trustees  and  Icept  with 
the  Treasurer  of  the   United  States,  who  shall  he  treasurer 
of  the  hoard  of  trustees,  in  lawful  money  as  a  reserve. 
The  hoard  of  trustees  shall  taJce  from  such  hanlcs  such 
security  in  puhlic  honds  or  other  securities,  supported  hy 
the  taxing  power,  as  the  hoard  may  prescribe,  approve, 
and  deem  sufficient  and   necessary  to  insure  the  safety 
and  prompt  payment  of  such  deposits  on  demand.     The 
funds  received  at  the  postal  savings  depository  offices  in 
each  city,  town,  village,  and   other  locality   shall  he  de- 
posited in   hanlcs   located   therein    {substantially   in   pro- 
portion to  the  capital  and  surplus  of  each  such  hanlc) 
willing  to  receive  such  deposits  under  the  terms  of  this 
act  and  the    regulations   made  hy  authority   thereof,   hut 
the  amount  deposited  in  any  one  hanlc  shall  at  no  time 
exceed  the  amount  of  the  paid-in  capital  and  one-half  the 
surplus  of  such  hanlc.     If  no  such  hanlc  exist  in  any  city, 
town,  village,  or  locality,  or  if  none  where  such  deposits  are 
made  will  receive  sucJh  deposits  on  the  terms  prescribed, 
then  such  funds  shall  he  deposited  under  the  terms  of  this 
act  in  the  hank  most  convenient  to  s-uch  locality.     If  no 
such  hanlc  in  any  State  or  Territory  is  willing  to  receive 
such  deposits  on  the  terms  prescribed,  then  the  same  shall 
he  deposited  with  the  treasurer  of  the  hoard  of  trustees,  and 
shall  he  counted  in  making  up  the  reserve  of  five  per  centum. 
Such  funds  may  he  withdrawn  from  the  treasurer  of  said 
hoecrd  of  trustees  and  all  other  postal  savings  funds ,  or  any 
part  of  such  funds,  may  he  at  any  time  withdrawn  from 
hanks  and  saving  depository  offices  for  the  repayment  of 
postal  savings  depositors  when  required  for  that  purpose. 
Not  exceeding  thirty  per  centum  of  the  amount  of  such 
funds  may  at  any  time  he  witlidrawn  by  the  trustees  for 
investment  in  honds  or  other  securities  of  the  United  States, 


REGULATIONS  GOVEEISrilS^G  DEPOSIT  OF  POSTAL  SAVINGS  FUNDS.       21 

it  heing  the  intent  of  this  act  that  the  residue  of  such  funds, 
amounting  to  sixty  five  per  centum  thereof,  shall  remain 
on  deposit  in  the  hanks  in  each  State  and  Territory  unU- 
ing  to  receive  the  same  under  the  terms  of  this  act,  and 
shall  he  a  working  halance  and  also  a  fund  whicJi  may  he 
withdrawn  for  investment  in  hands  or  other  securities  of 
the  United  States,  hut  only  hy  direction  of  the  President, 
and  only  when,  in  his  judgment,  the  general  welfare  and 
the  interests  of  the  United  States  so  require.  Interest 
and  profit  accruing  from  the  deposits  or  investment  of 
postal  savings  funds  shall  he  applied  to  the  payment  of 
interest  due  to  postal  savings  depositors  as  hereinhefore 
provided,  and  the  excess  thereof,  if  any,  shall  he  covered 
into  the  Treasury  of  the  United  States  as  a  part  of  the 
postal  revenue:  Provided,  That  postal  savings  funds  in 
the  treasury  of  said  hoard  shall  he  suhject  to  disposition 
as  provided  in  this  act,  and  not  otherwise:  And  provided 
further,  That  the  hoard  of  trustees  may  at  any  time  dis- 
pose of  honds  held  as  postal  savings  investments  and  use 
the  proceeds  to  meet  witMrawals  of  deposits  hy  depositors. 
For  the  purposes  of  this  Act,  the  word  "  Territory,"  as  used 
herein,  shall  he  held  to  include  the  District  of  Columbia, 
the  District  of  Alaska,  and  Porto  Rico,  and  the  word 
"hank"  shall  he  held  to  include  sav^ings  hanks  and  trust 
companies  doing  a  hanking  husiness.] 

Sec.  10.  That  any  depositor  iii  a  postal  savings  de-    i'^sm  savings 
pository  may  surrender  his  deposit,  or  any  part  thereof, 
in  sums  of  twenty  dollars,  forty  dollars,  sLxty  dollars,  ^gE^^^^'^s®     °^ 
eighty   doUars,   one  hundred   dollars,   and   multiples  of 
one  hundred  dollars  and  five  hundred  dollars,  and  receive 
m  heu  of  such  surrendered  deposits,  under  such  regula- 
tions as  may  be  estabhshed  by  the  board  of  trustees,  the 
amomit  of   the  surrendered   deposits  in  United   States 
coupon    or   registered   bonds    of    the   denommations   of    Denomina- 
twenty    dollars,    forty    dollars,    sixty    dollars,     eighty 
dollars,  one  hundred  dollars,  and  five  himdred  dollars,    interest. 
which  bonds  shall  bear  mterest  at  the  rate  of  two  and 
one-half  per  centum  per  annum,  payable  semiannually, 
and  be  redeemable  at  the  pleasure  of  the  United  States    Redeemable  af- 

!•  1  1  /•      1  ter  one  year. 

after  one  year  from  the  date  of  their  issue  and  payable.  Payable    after 

•^  1     ^  twenty  years,  in 

twenty  years  from  such  date,  and  both  principal  and  go^d  coin. 

interest  shall  be  payable  in  United  States  gold  coin  of  the 

present  standard  of  value:  Provided,   That   the  boiidSj^^^'^e^Jg^^'^^ds 

herein  authorized  shall  be  issued  only  (first)  when  there 

are  outstanding  bonds  of  the  United  States  subject  to 


22  POSTAL    SAVINGS    SYSTEM. 

call,  m  which  case  the  proceeds  of  the  bonds  shall  be 
applied  to  the  redemption  at  par  of  outstanding  bonds 
of  the  United  States  subject  to  call,  and  (second)  at 
times  when  under  authority  of  law  other  than  tiiat  con- 
tained in  this  act  the  Government  desires  to  issue  bonds 
for  the  purpose  of  replenishing  the  Treasury,  in  which  case 
the  issue  of  bonds  under  authority  of  this  act  shall  be 
in  lieu  of  the  issue  of  a  like  amount  of  bonds  issuable  under 
authority  of  law  other  than  that  contained  in  this  act: 
SecTet&Txo! Provided  further,  That  the  bonds  authorized  by  this 
scrRie  repiiiations  act  shall  be  issued  by  the  Secretary  of    the  Treasury 

of  l)ond  issue.  ,  ,  i,-  i  ■^  a      -i 

Board  of. tnis- Under  such  regulations  as  he  may  prescribe:  And  pro- 

in  vostai  savings vided  further,   That  the  authority  contained  in  section 

nine  of  this  act  for  the  investment  of  postal  savmgs  funds 

in  United  States  bonds  shall  include  the  authority  to 

invest  in  the  bonds  herein   authorized  whenever  such 

Exempt  from  bonds  may  be  lawfully  issued:  And  provided  further.  That 
the  bonds  herein  authorized  shall  be  exempt  from  aU 
taxes  or  duties  of  the  United  States  as  well  as  from  taxa- 
tion in  any  form  by  or  under  State,  municipal,  or  local 

Kot  receivable  authority:  And  provided  further,  That  no  bonds  author- 
as  security  for  is- .       Ill'  inn  •11       1  1        rr\ 

sue  Of  Circulating  ized  by  this  act  shall  be  receivable    by  the   ireasurer 

notes  by  national     ff.iTT-io  •       j-         i      •  r     •        i      • 

banks.  01  the  United  States  as  security  tor  the  issue  oi  circulating 

notes  by  national  banking  associations. 

unhod^'sTaSes     Sec.  11.  That   whenever   the   trustees   of    the   postal 

bonds.  savings  fund  have  in  their  possession  funds  available  for 

investment  in  United  States  bonds  they  may  notify  the 

Secretary  of  the  Treasury  of  the  amount  of  such  funds 

in  their  hands  which  they  desire  to  invest  in  bonds  of  the 

United  States  subject  to  call,  whereupon,  if  there  are 

Bonds  called  United  States  bonds  subject  to  call,  the  Secretary  of  the 

for  redemption.  inn/.i  •  ri 

Treasury  shall  call  for  redemption  an  amount  of  such 
bonds  equal  to  the  amount  of  the  funds  in  the  hands  of 
the  trustees  which  the  trustees  desire  to  thus  invest,  and 
the  bonds  so  called  shall  be  redeemed  at  par  with  accrued 
interest  at  the  Treasury  of  the  United  States  on  and 
after  three  months  from  the  date  of  such  call,  and 
B„„^g  j.pj^j.„p^ interest  on  the  said  bonds  shall  thereupon  cease:  Pro- 

to^boardof  trus-^,^j^f^^  That  the  said  bonds  when  redeemed  shall  be 
reissued  at  par  to  the  trustees  without  change  in  their 
terms  as  to  rate  of  interest  and  date  of  maturity:  And 

hoDds^soieL^^d.  provided  further,  That  the  bonds  so  reissued  may,  in  the 
discretion  of  the  Secretary  of  the  Treasury,  be  called  for 
redemption  from  the  trustees  in  like  manner  as  they 


KEGULATIONS  GOVEENIXG  DEPOSIT  OF  POSTAL  SAVINGS  FUNDS.       23 

were  originally  called  for  redemption  from  their  former 
owners  whenever  there  are  funds  in  the  Treasury  of  the 
United  States  available  for  such  redemption. 

Sec.  12.  That  postal  savings  depository  funds  shall  be^^jJ^f^J  brSt 
kept  separate  from  other  funds  by  postmasters  and  other  ^P^^^^^^^^^y  post- 
officers  and  employees  of  the  postal  service,  who  shall  be 
held  to  the  same  accomitabihty  under  their  bonds  for 
such  funds  as  for  pubUc  moneys;  and  no  person  con- 
nected with  the  Post  Office  Department  shall  disclose  to    Deposits   held 
any  person  other  than  the  depositor  the  amount  of  any 
deposits,  unless  directed  so  to  do  by  the  Postmaster  Gen- 
eral.    All   statutes   relating  to   the  safekeeping  of    and  to  safekoeping  of 

•  ,    ,  .     ,  f  Til     postalfunds  made 

proper  accountmg  for  postal  receipts  are  made  appucable  applicable. 

to  postal  savings  funds,  and  the  Postmaster  General  may 

require  postmasters,  assistant  postmasters,  and  clerks  at 

postal  savings  depositories  to  give  any  additional  bond  he    Additional 

■,  o  -/  bond. 

may  deem  necessary. 

[Sec.  13.  TJiat  additional  compensation  shall  l>e  allowed ^^f^.^^^^^^^^lf^^^ 
postmasters    at    post  offices  of  the  fourth    class  for    the^^^ff^^^yj^^ 
tran^saction  of  postal  savings  depository  business.     Such^-^^^^-  seepage 
compensation    shall    not    exceed    one-fourth    oj    one    per 
centum  on  the  average  sum  upon  which  interest  is  paid 
each   calendar  year  on   receipts   at  such  post  office,  and 
shall  he  paid  from  the  postal  revenues;  hut  postmasters, 
assistant   postraasters,  clerics,  or  other  eraployees  at  post 
offices    of  the    presidential   grade    shall   not   receive    any 
additional  compensation  ior  such  service.] 

Sec.  14.  That  the  sum  of  one  hundred  thousand  dollars  Appropriation, 
is  hereby  appropriated,  out  of  any  money  in  the  Treasury 
not  otherwise  appropriated,  or  so  much  thereof  as  may  be 
necessary,  to  enable  the  Postmaster  General  and  the 
board  of  trustees  to  establish  postal  savings  depositories 
in  accordance  with  the  provisions  of  this  act,  including 
the  reimbursement  of  the  Secretary  of  the  Treasury  for    Reimburse- 

.  "^       .  f  ment    of    Secre- 

expenses  incident  to  the  preparation,  issue,  and  registra- 1  a  r  y  of  the 
tion  of  the  bonds  authorized  in  this  act:  and  the  Post- ^Postmaster 

'  General  may  re- 

master General  is  authorized  to  require  postmasters  and  quire  postal  em- 

^  -^  .  plovces  to  trans- 

other  postal  officers  and  employees  to  transact,  in  con-  act"  postal  sav- 

■t^  .  ,  .  mgs  busmess. 

nection   with   their   other    duties,    such   postal   savings 
depository  business  as  may  be  necessary:  and  he  is  also  ^Postmaster 

^  •^  -^  1      e     1       1  General  may 

authorized  to  make,  and  with  the  approval  of  the  board  make  rules  and 

'  «  .  .  regulations    sub- 

of  trustees  to  promulgate,   and  from  time  to  time  toject  to  approval 

1  11  t      r        •  -I  1  1°^  hoard  of  trus- 

modify  or  revoke,  subject  to  the  approval  of  said  board,  tees, 
such  rules  and  regulations  not  in  conffict  with  law  as  he 


24  POSTAL   SAVINGS    SYSTEM. 

may  deem  necessary  to  cany  the  provisions  of  this  act 
into  effect. 
crSiMlf  St  a 't*l     Sec.  15.  That  all  the  safeguards  provided  by  law  for  the 
pH^bte  to  postal  protection  of  public  moneys,  and  aU  statutes  relatmg  to 
savings  funds.     ^]^q  embezzlement,  conversion,  improper  handluig,  reten- 
tion, use,  or  disposal  of  postal  and  money-order  funds  and 
the  punishments  provided  for  such  offenses  are  hereby 
extended  and  made  appHcable  to  postal  savmgs  deposi- 
tory fmids,  and  all  statutes  relating  to  false  returns  of 
postal  and  money-order  business,  the  forgery,  counter- 
feiting, alteration,  improper  use  or  handling  of  postal  and 
money-order  blanks,  forms,  vouchers,  accounts,  and  rec- 
ords, and  the  cUes,  plates,  and  engravings  therefor,  with 
the  penalties  provided  in  such  statutes,  are  hereby  ex- 
tended and  made  apphcable  to  postal  savings  depository 
busmess,  and  the  forgery,  counterfeiting,  alteration,  im- 
proper use   or    handling   of    postal   savmgs   depository 
blanks,  forms,  vouchers,  accounts,  and  records,  and  the 
dies,  plates,  and  engravings  therefor. 
paySt  ^f"  &t     Sec.  16.  That  the  faith  of  the  United  States  is  solemnly 
posits.  pledged  to  the  payment  of  the  deposits  made  in  postal 

savings  depository  offices,  with  accrued  interest  thereon 
as  herein  provided. 
of^^JrfsM'iu'be  Sec.  17.  That  the  final  judgment,  order,  or  decree  of 
rfghts'^^in^  posta°i  ^^J  court  of  Competent  jurisdiction  adjudicatmg  any 
savings  funds,  piglit  or  interest  in  the  credit  of  any  sums  deposited  by  any 
person  with  a  postal  savings  depository  if  the  same  shall 
not  have  been  appealed  from  and  the  time  for  appeal  has 
expired  shall,  upon  submission  to  the  Postmaster  General 
of  a  copy  of  the  same,  duly  authenticated  in  the  manner 
provided  by  the  laws  of  the  United  States  for  the  authen- 
tication of  the  records  and  judicial  proceedings  of  the 
courts  of  any  State  or  Temtorj"  or  of  any  possession 
subject  to  the  jurisdiction  of  the  United  States,  when  the 
same  are  proved  or  admitted  within  any  other  court 
within  the  United  States,  be  accepted  and  pursued  by  the 
board  of  trustees  as  conclusive  of  the  title,  right,  interest, 
or  possession  so  adjudicated,  and  any  payment  of  said 
sum  in  accordance  with  such  order,  judgment,  or  decree 
shall  operate  as  a  full  and  complete  discharge  of  the 
United  States  from  the  claim  or  demand  of  any  person  or 
persons,  to  the  same. 

Approved,  June  25,  1910. 


REGULATIONS  GOVERNING  DEPOSIT  OF  POSTAL  SAVINGS  EUNDS.       25 

AN  ACT  MAKING  APPROPRIATIONS  FOR  THE  SERVICE  OF 
THE  POST  OFFICE  DEPARTMENT  FOR  THE  FISCAL  YEAR 
ENDING  JUNE  THIRTIETH,  NINETEEN  HUNDRED  AND 
THIRTEEN,  AND   FOR  OTHER  PURPOSES. 

Be  it  enacted  by  the  Senate  and  House  of  Representatives 
of  the  United  States  of  America  in  Congress  assernbled, 

Sec.  10.  *  *  *  And  provided  further,  That  all  expendi-    -^"*^*- 
tures  in  the  postal  savings  system  shall  be  audited  by 
the  Auditor  for  the  Post  Office  Department:  And  pro- 
vided further,  That  the  Postmaster  General  shall  select  0^^°^^!:°^'*^^®'^ 
and  designate  the  post  offices  which  are  to  be  postal  sav-ofj^^^^^'snate 
ings  depository  offices,   and  shall  appoint  and  fix  the  tj.'^^^^^o/s  "gl 
compensation  of  such  superbitendents,  inspectoi's,  and'^™- 
other  employees  as  may  be  necessary  hi  conducting,  su- 
pervising, and  directiag  the  business  of  such  offices,  in- 
cluduig  the  employees  of  a  central  offioo  at  Washington, 
District  of  Columbia,  and  shall  prescribe  the  hours  drn'-ho^Efb^k/es* 
ing  which  postal  savhigs  depository  offices  shall  remain 
open.     He  shall  also  from  time  to  time  make  rules  and  latTonT^^o^dB^ 
regulations  with  respect  to  the  deposits  in  and  with-Siir*^  ''"^' 
drawals  of  moneys  from  postal  savings  depositories  and 
the  issue  of  pass  books  or  such  other  devices  as  he  may 
adopt  as  evidence  of  such  deposits  or  withchawals.     The 
provisions  of  the  Act  approved  June  twenty-fifth,  nine- i^fofamend^d.^' 
teen  hundred  and  ten,  are  hereby  modified  accordingly. 

n*  'P  T*  ▼  T*  T»  •1* 

Approved,  August  24,  1912. 


AN  ACT  TO  AMEND  THE  ACT  APPR0\T:D  JUNE  TWENTY- 
FIFTH,  NINETEEN  HUNDRED  AND  TEN,  ENTITLED  "AN 
ACT  TO  ESTABLISH  POSTAL  SAVINGS  DEPOSITORIES 
FOR  DEPOSITING  SAVINGS  AT  INTEREST  WITH  THE 
SECURITY  OF  THE  GOVERNMENT  FOR  REPAYilENT 
THEREOF,  AND  FOR  OTHER  PURPOSES." 

Be  it  enacted  by  the  Senate  and  House  of  Representatives 
of  fJie  United  States  of  America  in  Congress  assembled, 
That  sections  two  and  thirteen  of  the  act  approved 
June  twenty-fifth,  nineteen  hundred  and  ten,  entitled 
"An  act  to  establish  postal  savings  depositories  for 
depositing  savings  at  interest  with  the  security  of  the 
Government  for  repayment  thereof,  and  for  other  pur- 
poses," be  hereby  amended  to  read  as  follows: 


26  POSTAL    SAVINGS    SYSTEM. 

otheTofficiari^fi     "Sec.  2.  That  provisions  of  section  three  of  the  act 

™^*^ostaF savta"s  °^  J^^J  ^^^^'  cightoon  hundxcd  and  eighty-four,  entitled 

matter.  <^Yn  act  making  appropriations  for  the  service  of   the 

Post  Office  Department  for  the  fiscal  year  ending  June 

thirtieth,    eighteen    hundi'ed    and    eighty-five,    and   for 

other  purposes,'  are  hereby  extended  and  made  applicable 

to  all  official  mail  matter  pertaining  to  the  business  of 

Cost  of  carrying  t}ie  postal  savings  svstem ;  and  hereafter  the  board  of 

postal  savings  ^  id         ^  7  ^    ^  ,-.. 

mail  no  longer  to  trustccs  f  or  the  control,  supervision,  and  administration 

be    reported    to  .  . 

Congress.  of  the  postal  savings   depository  system  shall  not  be 

required  to  show  in  the  annual  report  prescribed  by 
section  one  of  the  act  of  June  twenty-fifth,  nineteen 
hundred  and  ten,  estabhshing  such  system,  the  amount 
of  work  done  for  that  system  by  the  Post  Office  Depart- 
ment and  postal  service  in  the  transportation  of  free  mail. 
No  extra  com-     "Sec.  13.  Postmastcrs,   assistaiit  postmasters,  clerks, 

pensation  to  post-  ■"  rvci  •i-i 

masters  or  postal  or  Other  employees  at  post  offices  of  the  presidential 

employees  for  j.       ^  j.  x 

tr ansae tingo;rade,  and  postmasters  at  post  offices  of  the  fourth  class, 

postal  savings®  ^  sr  r^  _    ^  7 

business.  shall  not  be  allowed  or  paid  any  additional  compensa- 

tion for   the   transaction   of  postal   savings   depository 
business." 

Approved,  September  23,  1914. 


AN  ACT  TO  AMEND  THE  ACT  APPR0\T:D  JTNE  TWENTY- 
FIFTH,  NINETEEN  HUNDRED  AND  TEN,  AUTHORIZING 
THE  POSTAL  SAVINGS  SYSTEM,  AND  FOR  OTHER  PUR- 
POSES. 

Be  it  enacted  ly  the  Senate  and  House  of  Representatives 
oj  tJie  United  States  of  America  in  Congress  assemhled,  That 
such  part  of  section  six  of  the  act  approved  Jime  twenty- 
fifth,  nineteen  hundred  and  ten,  authorizing  a  system  of 
postal  savings  depositories,  as  reads  "  but  no  one  shall 
tauonlemoved!'"  t>e  permitted  to  deposit  more  than  $100  in  any  one  cal- 
endar month"  is  hereby  amended  to  read  as  follows:  ''but 
the  balance  to  the  credit  of  any  person,  upon  which 
teYe?t"?b?aring  interest  is  payable,  shall  not  exceed  $1,000,  exclusive  of 
cfidft'^^of^'a  d*^ accumulated  interest";  and  said  act  is  further  amended 
positor.  gQ  ^]^g^^  ^j-^g  proviso  in  section  seven  thereof  shall  read  as 

follows:  ''Provided,  That  the  board  of  trustees  may,  in 
their   discretion,    and   imder  such  regulations   as   such 
intel-'^Jt-beaJin""^*^^^^  ^^^  promulgate,  acccpt  additional  deposits  not  to 
deposits.  exceed  in  the  aggregate  $1,000  for  each  depositor,  but 

upon  which  no  interest  shall  be  paid." 


EEGULATIOXS  GOVERNING  DEPOSIT  OF  POSTAL  SAVINGS  FUNDS.        27 

Sec.  2.  That  postal  savings  funds  received  under 'the  ^^^gP°si*<'^y 
provisions  of  this  act  shall  be  deposited  in  solvent  banks, 
whether  organized  under  National  or  State  laws,   and 
whether  member  banks  or  not  of  the  Federal  reserve 
system    established    by    the    act    approved    December 
twenty-third,  nineteen  hundred  and  thirteen,  being  sub- 
ject to  National  or  State  supervision  and  examination, 
and  the  sums  deposited  shall  bear  interest  at  the  rate  of  of^m^s™  ^^^^ 
not  less  than  two  and  one-fourth  per  centum  per  annum, 
which  rate  shall  be  uniform  throughout  the  United  States  ^^^^^  *»  ^«  inl- 
and Territories  thereof;  but  five  per  centum  of  such  funds    ^^^'^  p^^  <^^^^ 

'  -1  reserve. 

shall  be  withdrawn  by  the  board  of  trustees  and  kept 
with  the  Treasurer  of  the  United  States,  who  shall  be  boa/d '^  o"i' Yrus- 
treasurer  of  the  board  of  trustees,  in  lawful  money  as  a  ^^*^" 
reserve.     The  board  of   trustees  shaE   take  from  such 
banks  such  security  in  public  bonds  or  other  securities,  iiished"*ybai^' 
authorized  by  act  of  Congress  or  supported  by  the  taxing 
power,  as  the  board  may  prescribe,  approve,  and  deem 
sufficient  and  necessary  to  insure  the  safety  and  prompt 
payment  of  such  deposits  on  demand.     The  funds  re- 
ceived at  the  postal  savings  depository  offices  in  each    Postal  savings 
city,  town,  village,  and  other  locahty  shall  be  deposited  j^^js^^^jon  in 
in  banks  located  therein  (substantially  in  proportion  to 
the  capital  and  surplus  of  each  such  bank)  willing  to 
receive  such  deposits  under  the  terms  of  this  act  and  the 
regulations  made  by  authority  thereof:  Provided,  how- 
ever, If  one  or  more  member  banks  of  the  Federal  reserve    Member  tanks 

'  of    the     Federal 

system    established    by    the    act    approved    December  ^^s"^'®  system 

"^  .  .  ''  ^^  ,     given  preference. 

twenty-third,  nineteen  hundred  and  thirteen,  exists  in 
the  city,  town,  village,  or  locality  where  the  postal  sav- 
ings deposits  are  made,  such  deposits  shall  be  placed  in 
such  qualified  member  banks  substantially  in  proportion 
to  the  capital  and  sui'plus  of  each  such  bank,  but  if  such 
member  banks  fail  to  qualify  to  receive  such  deposits, 
then  any  other  bank  located  therein  may,  as  hereinbefore 
provided,  qualify  and  receive  the  same.  If  no  such 
member  bank  and  no  other  qualified  bank  exists  in  any  baSk  e^?s  '°*^ 
city,  town,  village,  or  locality,  or  if  none  where  such 
deposits  are  made  will  receive  such  deposits  on  the  terms 
prescribed,  then  such  funds  shall  be  deposited  under  the 
terms  of  this  act  in  the  bank  most  convenient  to  such 
locality.  If  no  such  bank  in  any  State  or  Territory  is 
willing  to  receive  such  deposits  on  the  terms  prescribed, 
then  such  funds  shall  be  deposited  with  the  treasurer  of    Deposits  with 

treasurer. 


28  POSTAL    SAVINGS    SYSTEM. 

the  board  i>l  ti"U3tees  and  shall  be  counted  in  making  up 

the  reserve  of  five  per  centum.     Such  funds  may  be 

All  funds  avail- withdrawn  from  the  treasiu'er  of  said  board  of  trustees, 

mint  of'  deposi'  and  all  Other  postal  savings  funds,  or  any  part  of  such 

*""•  funds,  may  be  at  any  time  withdrawn  from  the  banks 

and  savings  depository  offices  for  the  repayment  of  postal 

savings  depositor  when  required  for  that  purpose.     If  at 

Excess  deposits  any  time  the  postal  savings  deposits  in  any  State  or  Ter- 

bo   invested   in  ritorv  shall  excecd  the  amouut  which  the  qualified  banks 

United        States    ,        ^  .„.  .  i  i  r     i  • 

bonds.  therein  are  wilhng  to  receive  under  the  terms  oi  this  act, 

and  such  excess  amount  is  not  required  to  make  up  the  re- 
serve fund  of  five  per  centum  hereinbefore  provided  for,  the 
board  of  trustees  may  invest  all  or  any  part  of  such  excess 
amount  in  bonds  or  other  securities  of  the  United  States. 
All  funds  ex-  When,  in  the  j  udgment  of  the  President,  the  general  welfare 

be  invested  by  and  interests  of  the  United  States  so  require,  the  board  of 

direction    of   the  .  ,      ^■,  ,       «•   ,i  ,    i  • 

President.  ti*ustees  may  invest  all  or  any  part  oi  the  postal  savmgs 

funds,  except  the  reserve  fund  of  five  per  centum  herein 
provided  for,  in  bonds  or  other  securities  of  the  United 
Board  of  trus- States.     The   board   of   trustees   may  in  its    discretion 
ct^  ^olt&i  ?iv- purchase  from  the  holders  thereof  bonds  which  have  been 
hoiders!^*^  ^^°^  01"  niay  be  issued  under  the  provisions  of  section  ten  of  the 
act   of  June   twenty-fifth,    nineteen   hundred   and   ten. 
Interest  and  Interest  and  profit  accruing  from  the  deposits  or  invest- 
payment  of  inter- ment  of  postal  saviugs  fuuds  shall  be  applied  to  the  pay- 
ment of  interest  due  to  postal  savings  depositors,  as  here- 
Excess  to  beinbefore  provided,  and  the  excess  thereof,  if  any,  shall 
tai  revenue.        be  covercd  iiito  the  Treasury  of  the  United  States  as  a 
Unauthorized  part  of  the  postal  rcveuue :  Provided  further,  That  postal 
fimds  forbidden,  saviugs  fuuds  in  the  treasury  of  said  board  shall  be  sub- 
ject to  disposition  as  provided  in  this  act,  and  not  other- 
wise: And  provided  furtlier,  That  the  board  of  trustees 
Di.sposai  of  in-  may  at  any  time  dispose  of  bonds  held  as  postal  savings 

vestment    bonds.  ,  ,  i  .-i  i,  j._-j.ii  ^        c 

to    meet    with-  mvestmcuts  and  use  the  proceeds  to  meet  withdrawals  or 

deposits  by  depositors.     For  the  purposes  of  this  act  the 

MeaninR   ofword  ''Territory"  as  used  herein  shall  be  held  to  include 

ern  orj .        ^^^  District  of  Columbia,  the  District  of  Alaska,  and  Porto 

Savings  banks Rico,  and  the  word  ''bank"  shall  be  held  to  mdude  sav- 

and    trust    com- .  ■,         -,  iij_  •         ^    •  ii't_" 

panies.  lugs  banks  and  trust  companies  doing  a  banking  business. 

Repeal  of  con-     Sec.  17.  That  all  laws  or  parts  of  laws  in  conflict  with 
the  provisions  of  this  act  are  hereby  repealed. 
Approved,  May  18,  1916. 

O 


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Syracuse,  N.  Y. 
PATJW.21,W0B 


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